Market volatility is always going to happen. It is necessary to have a plan in place to mitigate it. Now, that plan needs to include the consideration of annuities, regardless of where you are in your current financial circumstances.

Market Volatility and Annuities- Risk, Income, and Guarantees

Some questions to ask yourself in considering an annuity: “Are you concerned with risk?” “Are you concerned with outliving your income?”, and “Do you want more guarantees?”

All of these are important when considering an annuity, but the most significant is that it provides the income you can’t outlive, regardless of the return.

Help your clients to understand why an annuity could be a good consideration based on volatility, inflation, and the general economy:

1. Have the client create a username and password at ssa.gov/myaccount. Doing so can create a baseline of monthly income that the client will receive for life: a pension.
2. If the client has not retired yet, ask them how much of their pre-retirement income they would like to replace when they retire. It’s recommended that, with inflation baked in, the number should be around 75%.
3. Close with, “If I could show you a solution where I could guarantee this income for the rest of your life, would you be interested”? This is the annuity

Market Volatility and Annuities- What are the best options for your clients?

So, we are currently in a perfect storm of potential negativity. However, not all is lost if you have a plan. You can calm the market volatility with an annuity. Additionally, you don’t have to put all of your assets into this solution. There are many myths and misinformation with respect to the placement that annuities have, especially during times of market volatility. Understanding the reasons behind this option will make your clients more comfortable in considering them, and ultimately have a less stressful time leading up to, and during, retirement.

Fixed annuities including Fixed Index, MYGA’s, and SPIA’s, can help your clients balance their portfolio risk tolerance and insulate their retirement savings from the inevitable.

When trying to navigate these important considerations, lean on the experts at Pinnacle Financial Services. Our expert team can evaluate your client’s needs and make recommendations that will provide peace of mind during these times of uncertainty.